Show i RESUME BUilDING VORK Reaction Ca Caused used By High Material and Labor Is Left Behind By liv Iti In RO Special Correspondent C for The d rd I Ix COP right iDa 1323 NEW NEV YORK TORK Jul July Perhaps 21 the most mot encouraging developments ot of tho the week neck cel In the tho commercial sit sit- git was the thc announced declon ot of the large laree construction con com companies panics to lo go co ahead head with the tho building pro pro- program program pro program gram which ch they abandoned last May because ot or costs cots for tor labor labul and materials I It Is not that this Incident Is so important In Itse Itself It but rather haI ha I illustrates the unvarying Process by which excesses In orIn or in prices are arc corrected The lesson should be taken to heart b by those who fore foresee ce sale hole disaster In a declining t ket Ket I Dr DEI ND 0 STILL STILLI 1 There hero here was and till stilt Is a large larB demand for tor building con con- construction construction con construction The deficiency ac accumulated during dunns the ear nar has not been made up and ond is not to bo lo made up Ul for tor se eral se cral years to cone Buthen But when hen o l months ago there thero seemed to be Lo no prospect oZ of any letup in tho the demand for tor high hIgh- hIgher higher er or wages and mounting costs of materials the building pro pro- program program pro program gram came camo to lo an abrupt halt hait The mortgage and nd Insurance companies which finance new construction aswell as well elt as the contractors contractor withdrew the thIr Ir support But lint now nov steel and lumber at lower and wages wac ore are ap- ap apparently p stabilized Moreover ad- ad additional ad additional worker have been attract attract- attracted attracted ed cd b bv by the publicity giten to the higher share claimed by and warded awarded to labor under p pret-ent pret t conditions So o 0 In this one line at I least ast business takes take courage antI and the recent reaction is left lert behind un r r ANI AND OU Ott The building Industry Is different i trem some others In that there Is Ino no doubt about the consumptive do- do domand de demand Imand mand Th Tho situation with regard to toI heat and oil olt Is not an exact paral paral- parallel let leI In both these latter cases caes I there Is an apparently e cessn e supply to T tho the demand Is In Inadequate In- In InI Inadequate inadequate I adequate The fhe consequence Is lowar prices for tor both commodIties But BISt It Is the Invariable rule that lower ower prices Increase consumptive demand The only doubt Is how low prIces must go co before this Increased demand lomand becomes Sooner or later ater however thIs thi point Is r reached ached It Is the function of ot the sp to anticipate this re- re result re suIt sult In so o doing hei ho performs a aCrY orv a CrY rv useful service and whatever tends ends to hamper speculation is to this hi extent Injurious rI FIXING LG Vb T l S As Aa far tar as us wheat beat Is ll concerned thore have been repeated demands that the step In and ix a price which would enable the farmer to lo pot got more than the cost or of production It Ih needless to argue that this will only make matters worse e Those who Mho advocate this remedy are lire Immune to the th argo- argo argument ment ment It if howe however er before any scheme chemo for tor government price lx fix fix- fixing ne ing could be put Into ette effect t the them m market should rally under uDder the pIa play ot of purely economic forces the cam cam- campaign campaign cam in behalf of ot government In- In In would w lose loso Its It Impetus There Thero Is already dy a movement to limit the tho output ot of o oil a devIce not Immediately practical In the case or of wheat heat that promises at least to stabilize the price It Is also per per- per perfectly er- er possible that the low price here also will stirn stimulate ulata the th do- do dem domand de demand m mand nd S IIII It Is this natural process ot or cor- cor correctIon cor correction which the securities r mtr- mir mir-iet hate haic been taking notice ot of this week The pessimism which ae- ae accompanied ac accompanied companied these e months month of ot ne In tog quotations is gradually being dl and It Is I beginning to dawn upon the minds ot of those who speculate In stocks tock that perhaps after all alt the th business outlook Is not entirely black or e en c en dark Com Com- Comparisons Com Com- Comparisons Comparison parison are no mado made not between the present o ot business and that tint ot of last lat March but between the present and a year ago RO this thi time Th The result Is that slowly but very persistently speculative and speculatIve semi tiei tiel ar are ro recovering their lot lost ground rr rn cn Ce IN L There remaIns to be considered I the situation abroad and while whilo It would be bo exceedIngly dangerous to Indulge In any prediction when there are so o many unknown factors It can well welt be maintained that soon soon- oon-cr oon I or er or later the logic ot of o events event must a reasonable tenement bOO be- be between tween Franco France and Germany Ir if IrI Irand and when that comes to pass there I Is not an tin immediate favorable n- n r re reaction action upon our own industry It will be very veT surprising lne A Insists InIst that business a In can caD bo be at a high level lovel een e without the Iuro uro- uro market but a a clearing up or of orthe othe the tho situation over there thero would greatly emphasize prosperity here hereIt orI I It la is significant In this connection that the foreign bond market marlet no lorg manifests the In- In In tore tore-st In the progress of ot negotiations abroad that It did when alien hen th French Initiated scion adon agaInst Germany last February Foreign bonds still till sell Hell very low but are remarkably firm considering the of the thO th news newa new and the tb reaction In the th exchanges RAIL Ro RATE CUTSIn CUTSin CUTS CUTSIn In only one does docs th the alt sit sit- lall to show tho r Improvement I There lIS is I still bitter political Ol o- o to the railroads and nd threats or of cuts In rates rat In he h face of ot thia thi and ad these threat ats rail rall- r road railroad stocks lock make only a a t feeble bl re- re re fl SpOUse pou to the th rood t t |